over the internet, and some say bitcoin is legit and can pave the way for digital concern sees, one click at a time. >> if your choice did not win or you want to check out the runners up, i will have the link to them on suzanne malveaux's facebook page, at facebook.com/suzannecnn. if you think the british press is rough and tumble, you have to love parliament. welcome to an uncommon session of the house of commons where the phone hacking scandal began years ago in a now defunct tabloid, and imagine if the u.s. president had to stand in front of congress and defend his hiring of a newspaper man suspected of scandal.

koulson quit the job in january, and was arrested last month. now, the prime minister is now in the mood to apologize. >> what the public expect is not pedestriany political point scoring, but -- [ jeering ] what they want is to solve the issue out once and for all, and it's in that spirit i commend this comment to the house. >> just yesterday rupert murdoch, his son james, and top british executive for news corp,

rebekah brooks, were in front of the committee. of course, there's the prime minister, david cameron facing the single biggest crisis in his 15 months as prime minister. we have been watching the spectacle. is cameron's leadership really under threat here? >> reporter: well, it certainly is being tested to the absolute limit. yesterday it was rupert and james murdochs time to be grilled, and now it's cameron's day to face the music, and he was asked repeatedly in his decision to hire andy coulson, and now coulson has been arrested as part of the investigation.

let's hear what he said. >> he says in hindsight he made a mistake by hiring mr. coulson. that is not good enough. it's not about hindsight, mr. speaker, or whether or not he was lied to, but it's about the information and warnings that the prime minister ignored. he was warned, and he preferred to ignore the warnings. >> the prime minister says he wasn't warned, and he never received those warnings. he said he will say sorry for hiring andy koulson.

he has only been arrested and not formally indicted, and the prime minister is saying i took him at his word and he said he did not know what was going on and i wanted to give him a second chance. >> and the prime minister did add one more investigation into the mix. tell me about that. >> reporter: yeah, that's right. we have now got this look at the kind of broad er epics of what s going on in journalism, an inquiry specifically into phone hacking, and that is a judge inquiry, and it is getting under way. they will start to dig down. but they have got to do that in parallel to the police inquiry. it's a difficult balancing act, and it's an inquiry that will probably go on for months and possibly years, being described as a watershed moment in the relationship between the press, the police and the politicians. >> dan rivers for us in london.

dan, thank you as always. close ties with the murdoch crowd are now a liability. rebekah brooks told lawmakers yesterday that she visited cameron's predecessors a lot more often than she saw cameron. listen to this. >> the fact is i have never been to downing street while cameron has been prime minister, and yet under prime minister brown and tony blair, i did regularly go. strangely it was under labor issues, and it was not the current administration. >> six investigations are now under way into phone hacks and bribes to the police. some of the other big stories we're keeping an eye on.

we are learning president obama plans to meet with house and senate democratic leadership this afternoon at the white house. 2:50 p.m., to be exact. this all because we're less than two weeks away from the federal government defaulting on its obligations, and congress has yet to work out a deal. president obama's debt-cutting plan can't pass the house and the plan from house republicans can't pass the senate. house speaker john boehner reiterated tuesday that default is not in the cards. and also on tuesday, the so-called gang of six unveiled their plans. it was called, quote, more plan to have a plan. republicans are united against any tax increases, and democrats are against inentitlement reform. american airlines is replacing its fleet with hundreds of new planes from boeings and airbuses.

the new aircraft order will replace the fleet with more fuel efficient planes. it calls for 460 planes. boeing says the new planes are 5% more fuel efficient than older generations that were built in the 1990s. in texas, the man behind a shooting rampage after the septd 11th terror attacks is set to be executed tonight. marc anthony targeted those he believed to be in middle eastern dissent in retaliation for the attacks. he was on bail at the time for previous crimes. prosecutors claim he carefully plotted the attacks. one of the men he shot has forgiven him and urged the state of texas to spare his life. 75 former football players are suing the nfl, and saying the nfl knew as early as the

1920s of the dangerous affects of a concussion on a player's plame. league spokesman told the website that the league was not aware of the claims of the suit but would vigorously contest any claims of that kind. at the bottom of the hour, we will talk with the widow of a man that committed suicide and told them he wanted his brain used for research in research for playing the game. we will ask a mayor and school board member what exactly is going on in memphis.

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schoolchildren in memphis could be getting a longer than expected summer break. the school board voted to delay the start of school. the board says the city has shorted the district about $50 million over the last several years, and classes will not start until they get $55 million the city owes the schools this year. they said schools to be closed indefinitely. >> on a vote of 8-1 decided we're no longer going to wait for funds that the state says we're rightfully due, and 8-1 was the vote to delay indefinitely. >> here with us live from memphis to talk about the dispute is the school commissioner, and joining us by phone is the mayor of memphis.

mayor, will this dispute be resolved in time for school to start as scheduled, do you think? >> yes, it will. let me say this, this was started by the council some years before i got here, and i will get it resolved. i did not have a vote when the decision was made that got us into the situation, but we're going to do what is necessary to make sure that the children are back in school on time, and that the teachers are back in school on time. the fact is we don't have $55 million, but we will get something worked out to have the schools started on time. >> the vote was to keep the kids out of school indefinitely until you get the $55 million. are you concerned about the children losing out here? >> absolutely. let me be clear, the vote that was taken last evening clearly stated that we would accept the

minimum amount which was $9 million with the agreement to accept the rest of the money in equal installments. but clearly we know the city council does not have that $55 million, that they are sitting on it, and a portion of the dollars can be expended. the city council as per the mayor stated it's already in the budget. in fact, more pointedly, two days ago the check was in the mail. all we are saying is we would not be able to start schools and be able to meet a full payroll for the teachers and faculty and staff and that would depleat the education for the students, and that's what we're concerned about. >> let me clear up one thing. >> yes, mayor, go ahead. >> what we have, that does not mean the revenue is here. that's the difficulty. we did indeed over budget for

the memphis city schools, but the property taxpayers have not paid their bills yet. we're required by law to get this money from the property tax and the deadline on that, they will become delinquent september 1st. we will come up with something, and we don't want to give the impression that we have the money and we're holding it. >> where will you get the money from? >> from some current revenues, and we can work out an installment. not $55 million as the commissioner pointed out. >> no, sir, what i pointed out, we knew you did not have the $55 million, therefore we said we would accept the minimum amount due. i was clearing up the resolution. that's right. >> and that's precisely what we're working on. i guess in some political circles, one would say, oh, they bluffed us and we're not giving in to a bluff. we're talking about children, and we can play politics later

on. this does not start with me but with the council, and we can get this resolved like adults. the children will go to school on august 8th. if they don't, it won't be because of the city of memphis. >> what has been the reaction of parents after the board voted to go ahead and keep the kids out of school? >> what we have received, we're upset. but as a parent as a child that attends memphis city schools as well, and i said please look at the big picture. it's not that we want to hold your kids out of school until we get from the city council, and we're not using them as pons, but we want to give them a quaumt education, and every parent wants to send their child to school and know they will be safe and receive a quality

education. >> what are they lacking without the funding right now where you would go to such extreme measures to keep them out of school. >> by the way, this is one-tenth of their budget. >> okay, mayor. >> we are not legal as it relates to the maintenance. so the money, whether it's one-tenth of the budget. >> but what are the students without? >> so if in fact we do not open schools, they will be without the rotc programming, and they stand to lose programming, and any of the programming that is not mandated by the state. so not only that, but the class size ratio will be larger as well. this is not a political game or

ploy inasmuch that we want to make sure all of our students receive an appropriate and quality education. >> mayor, would you like to respond to that? >> the bottom line, the children will go to school. we want to reassure they will go to school on time, and we can deal with the inside baseball stuff later on. the children are going to school, and the teachers will report if they do not, and it will not be because of any shortcomings of the city. >> mayor, and commissioner, we appreciate your time. >> thank you very much. >> we hope you get this resolved sooner, rather than later, for your students there. think the nfl lockout is only affecting rich athletes and ceos? wrong. it's slamming small economies around the country. that's next.

tonight, nfl players could vote on a collective bargaining agreement to end the lockout, and owners could e vote tomorrow, and if it comes to an end it won't change the fate of cities hit all around the country because of the standoff. poppy, what has been the impact on the lockout on every day people? >> that's a good question. a much bigger impact than any of us would have thought. you think of the owners, billion airs, and the players that make a lot of money, but you don't think of the small towns that rely on the teams. i am talking about where they go to train. we went up to courtland, new york, and that's where they normally hold their training

camps, but not this year. >> reporter: last summer, it looked like this. but this year it won't look like anything close. >> it's like royalty coming into town for us. >> reporter: population, 19,000, it has been home to the new york jets' training camp since 2009. >> coming up here, it exceeded our expectations. >> reporter: a year ago, this field was full of players, and it attracted 41,000 spectators that filled the local bars and restaurants. this year, there's none. jets' management cancelled training camp here, said the planning is extensive, and something they could not focus on during the lockout. >> we missed out big-time. >> we have 250-pound pro athletes walking down the street, and it's amazing and they're in your restaurant. >> reporter: a major blow to the

tiny economy. >> we're talking millions of dollars for the small businesses. >> reporter: jets' training camp brought in $5.8 million last year in just three weeks, nearly 5% of the county's entire budget. >> the best month we ever had. a couple bills thrown at sanchez, because he just signed his contract. >> all the restaurants we go to, it's really too bad. >> reporter: it created a tourism business where there was not one. tell me what it was like when you found out the jets were bringing their training camp here? >> i think my jaw dropped. it has been my favorite team for 30 years. i cannot explain the emotion. >> reporter: and the baltimore ravens cancelled their camp in maryland. that was a $2.2 million hit.

and the giants are not training in the state's capitol. the impact in new york, it's so big the state attorney general launched a antitrust investigation into the lockout. as for folks here in courtlund, they can't wait until next year when the jets come back. you know, randi, it's interesting, it used to be new york giants territory, and now that the jets practice up there they moved to the jets' side of this. and i spoke with the office of the attorney general this morning, and i was told that if a deal is reached, the players vote tonight on that in the nfl, then it will be determined whether or not that investigation will go on. even if the players reach a deal, that doesn't bring the

millions of dollars and training camp back. >> you focused on that city, and that's terrible, but how widespread is the impact of this? >> very widespread. so far we counted a handful of teams that cancelled training camps. you have the new york giants in albany, and the minnesota vikings, possibly talking about not going to training camp. there are people sitting on pins and needles. they have not known where the negotiations stand. this is not just one town, but a lot of towns across america at a time when we need as many jobs and as much revenue as you can get for these places. >> poppy, thank you. now i want to tell you about something really exciting. if you have to step away from the tv but you don't want to miss a minute of our show or anything on cnn, can you download a cnn iphone or ipad app. we're streaming live right here.

check it out at cnn.com/video on your computer, and you can see how cool it is. this is us, and you still see poppy there. it's a minute or so behind on what you see on regular television, but watch on demand clips, and you can actually even rewind live video if you missed anything. you can get cnn anywhere you are on the go. cnn.com/video. time right now, 25 minutes past the hour. time to check in on top stories that we're following. british prime minister, david cameron, was grilled in parliament over relationships with those at the heart of the phone hacking scandal at news of the world newspaper. we just heard from the white house that president obama would agree to a short-term extension of the federal debt ceiling if there is agreement on a significant deficit reduction

plan by democrats and republicans that needs more time to be passed by congress. this is something the president has steadfastly opposed until now. president obama says the deadline is drawing close, and congressional leaders need to talk turkey in today's meetings. nasa's final space shuttle mission is scheduled to end tomorrow when atlantis lands at 5:56 eastern time. you are looking at live pictures there. enjoy them while you can. the crew is returning from the international space station. nasa will be retiring its three space shuttles, and sending them to museums, and 2300 shuttle workers are set to be laid off this week. a generation defined by technology. also known as millennials. a few cool things they're missing out on. [ male announcer ] introducing the ultimate business phone --

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vinyl records, and the milk

man are a few things the millennials are missing out on. but as it turns out, some are turning back the clock. >> reporter: the anti-i-tunes, and rose and rose of vinyl records, and lps and 45s, and 78s, even. why is there a market for this stuff? >> it's a deep, soulful experience. i have seen teenagers that have never see a record before, see one and be intranced and want to get a collection. remember the smell of the cover when you took the cellophane off of the record? the smell of the record cover alone was a sen cha experience.

>> there's something about a typewriter that you can't get from a ipad. it has a physical presence. like you're connected to it. >> what is the best thing about a typewriter? the bell. actually, the type writers are keeping us alive. we're not going to get wealthy off of this, but we can make a living. >> the one question that i get probably on a weekly basis is they still have pay phones? >> reporter: more than 1 million pay phones have been retired since 1997, and they are in places where people can't afford

or don't have access to a cell phone. >> we have no crystal ball, obviously, but among our technicians, we estimate four or five years of pretty good coin revenue, but new knows. >> let's so sell milk. >> reporter: it's 30 years and counting for the milk man. >> people are shocked when we tell them we do the old-fashioned milk service. >> reporter: no bottles these days, but plenty of customers, including millennials wanting to buy locally produced food. >> yeah, they want to give the little guy a shot. >> reporter: he delivers the kind of service that he says may solve some of the millennials challenges. >> with all of the politics in the world, and i am not a political kind of guy, but this country is so divided right now,

everybody needs a milk man. >> reporter: could it be that simple? some of your favorite restaurant chains may be lying to you about how many calories are in their food. wait until you see the numbers right after this. my cream is what makes stouffer's fettuccini alfredo so delicious. i think you'll find it's the vegetables. deliciously rich. flavorful! [ female announcer ] together at last. introducing new stouffer's farmers' harvest with sides of lightly sauteed farm-picked vegetables. find more ways to get to the table at letsfixdinner.com.

let's check some of the news and other headlines you may have missed. british prime minister david cameron was grilled by parliament today over the relationship with those at the heart of the scandal over world of the news newspaper. >> and i am extremely sorry about the fur rfury it has caus. i would not have offered him the job, and expect he would not have taken it. but you don't make decisions in hindsight. >> we just heard from the white house that president obama would agree to a short-term extension of the federal debt ceiling if there's an agreement on a significant reduction plan by republicans and democrats that needs more time.

this is something the president has steadfast ly opposed until now. a new advancement in airport security was put in place today. they are replacing the image with an outline of a person. according to a tsa official, there are nearly 500 imaging technology units in the u.s., and more units will be deployed this year. you think you are being smart when you check a website to see how many calories are in something. but one out of five restaurant dishes have 100 more calories than stated on the website.

up next, more bad news for the nfl. we'll tell you about the lawsuit just filed by dozens of former players.

it was a little over a year ago the national football league finally admitted for the first time there's a link between concussions and brain damage. but today new allegations the league has known for almost a century how harmful concussions could be. a new lawsuit claims the nfl not only knew but intentionally concealed that information from the coaches and players and trainers and the public. we reached out to the nfl for comment, and it says we have not seen the complaint but would

vigorously contest any claims of this kind. and the company that makes helmets for the nfl is also named in the lawsuit. and alicia duerson, her husband killed himself asking that his brain be used for studying in this issue. i want to thank you for being with us. i know it's a tough topic for you. i have to ask you, what is your reaction to the lawsuit today? >> well, i have mixed emotions about it. i truly believe the nfl must have known on some level because there were always doctors present with these guys, but i guess the other part of me is saying the 12 families who lost

their loved ones and their husbands or fathers did have bte, and i feel like we're the families who they probably needed to help in the lawsuit as well, because it's one thing to say that, you know, it caused it, but it's another thing to actually have it, which dave actually had it. >> what do you think dave would think of the lawsuit that now has been filed? >> i think dave would approve of it, i think, because he did want his brain donated, and he felt there was a problem with his brain, and he felt because of all of the blows he took to his head, that it caused him to have this problem. so dave has sacrificed his brain so they could research and develop and get better safety procedures and things like that for the nfl and for future

football players. >> tell me about the text message he sent the night before he died. >> he basically went into just, you know, how much he loved us and loved the kids and take care of them, and then he said that he felt that there was something wrong with the left side of his brain, and for me to please get it to the nfl. >> he was 50 when he passed away. what kind of symptoms was he showing that might have been related to this, and how early did those symptoms come on? >> dave showed -- well, it's -- okay. one thing is, dave had it for a long time. when they did his brain, the doctor said brain had it for ten years, okay? so if you look back on the life with dave, my personal life with dave ten years ago, it explains

a lot of things of what he was going through, and none of us understand what he was going through. you look back, and hindsight is 20/20, and i understand it now. it was difficult for him, because he was such a brilliant man, and he was very gifted. you know, for him to just forget simple things, like directions, or having to write things down constantly as reminders for himself, and he was aggravated a lot. you could easily aggravate him. just different -- he was just a totally different person, just totally. 100% different. >> all right. alicia duerson, appreciate you coming on the show. we will talk much more about this in our next hour, about 45

minutes from now, with dr. sanjay gupta, and he has looked at this subject extensively and will be here to talk more about that. he is 14, and he says he kills victims by cutting their throats. an alleged drug cartel hitman. details after this.

breaking news now into cnn. want to get to suzanne

candiotti. she has new news related to the murdoch hacking scandal and the family. >> the families of 9/11 victims who had been worried about whether their phone records might have been hacked, they have now been given a meeting with the u.s. attorney general, eric holder, and fbi director, mr. muller. after the fbi launched its investigation last week to see whether any phone records or voice mails had been hacked, that's when the families started to ask for the meeting because they are worried it might have occurred. it's important to remember that the suspicion this might have happened was reported in a british newspaper, a tabloid. they cited an unnamed source that claimed that a private investigator here in new york had been contacted by a reporter to hack into these phone records, and that the investigator had turned them down. so families want to know whether

this indeed did occur. so far our understanding is that no evidence has shown up, but of course the investigation is just now getting under way. randi? and no date has been set for the meeting, not yet. >> thank you for the update. and when mexican drug lords hire hitmen, age apparently doesn't matter. take the case of a 14-year-old american on trial in mexico allegedly accused of killing. he confessed to the murder of four people. he said he did it by cutting his victims' throats. you join us now to bring us up-to-date on this. what do we know about the suspect and the cartel that he was working for? >> this is a story where the most negative aspects of the drug trade converge. this kid was recruited by a drug

cartel by the name of the southpaw sific cartel when he was 11. by his own admission, he was shown in front of the cameras when arrested, and he executed four people by decapitating them. the trial started on monday and is expected to last three weeks, bosses because he is a minor, he is expected to spend three years in a correctional facility. >> he was 11. why did he join the cartel? >> they are recruiting them as lookouts, but in this case what we have seen is they posted videos on youtube and the internet as enforcers, and this 14-year-old was shown torturing one of the victims, and that's why he is facing trial. >> any idea how many minors are

getting caught up in this? >> i am told that they are seeing more and more of these cases where kids are 11, 12, 13 and 14, and they are working for cartels, and they use them to run drugs and weapons, and help them in any other way they can. >> they are so young, and they are easily impressed and think what the cartels are doing are cool and impressive to them. thank you very much and appreciate it. giving the voice to the voiceless. it's a cutting edge innovation by researchers, and we'll go behind the science and talk live to the innovators in today's big inext. g huh? [ male announcer ] should've used roundup. america's number one weed killer. it kills weeds to the root, so they don't come back.

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every day on this show we do a segment called the bigi. it's about big ideas, innovations and solutions to problems. today we focus on a new synthetic material that could literally bring voice to the voiceless. researchers at m.i.t. harvard and massachusetts general hospital have developed material that can repair damaged vocal cords. it's a gel like substance that will replace vocal cords that have become rigid from extensive use. meet the chemist and medical doctor behind the vocal chord invision. dr. steven vitels. and director of the center of laryngeal surgery. this sound really cool.

certainly can be very useful, i'm sure, to a lot of people. doctor, why don't you tell me first, tell me about what you've created here and what it will mean for people who have vocal chord damage and those who might not have a voice. >> well, fundamentally the majority of folks who have lost their voice, the overwhelming majority have lost the suppleness and pliability of their vocal membranes, regardless if it was a benign or a malignant problem, obviously a cancer. so there was a fundamental principle that the supple membranes needed to be restored. this became a goal of ours, to create a substance that could restore that pliability because that could eventually lead to the preservation of most voices and actually restore millions that have been lost. >> and who can this help? who would be the perfect person for something like this? >> well, if i may, many people

who have scarred vocal chords and who have stiff vocal chords will be the right kind of patients for who could receive this kind of material. >> so you have a scenario where whether someone has diminished pliability because they talk a lot, because they've had operations and tubes into their throats, premature babies have actually often had their lungs supported by endo tracheal tubes. these kids when they grow up have a lot of vocal problems. you have diseases. one of them is hpv related, respiratory papillomatosis where people can have 100 operations. then there's the simple use over time. most of what we allot to people's voice getting older, an ageing voice, is actually just that they've used it more. and over time we're going to see

manual inputting is decreased on devices and key boards people will be doing voice recognition. >> how close is this to fda approval? >> we had a visit with the fda last year, and they were incredibly supportive and also quite encouraging. because vocal implants have been done for probably 100 years. the materials that the doctor can discuss, the constituents are already fda approved in other products. so that was the goal of this. to not start with a material that would be brand-new to the fda. >> all right. certainly appreciate you coming on and sharing this creation with us. we look forward to its use in the future. thank you. a florida representative calls a fellow florida representative the most vile, despicable member of the house. joe johns will join us with the details right after the break.

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the debt debate got ugly between two florida representatives. cnn's joe johns joins me live from the political desk in washington. the fur was flying oun the hill, huh? >> randy, it's certainly getting even uglier out there. two of the most outspoken members of congress are going at it right now. neither one of them is the kind of person bho backs down. they're both from florida. democratic congresswoman debbie

wasserman schultz. the debate over cut, cap and balance that just passed last night. wasserman schultz went after him on the floor. this is how it started. calling his support of the bill unbelievable. take a listen to what she said to kick it off. >> incredulously, the gentleman from florida who represents thousands of medicare beneficiaries as do i is supportive of this plan that would increase costs for medicare beneficiaries. unbelievable from a member from south florida. >> so west takes these remarks personally and fires off this e-mail. you want a personal fight? i'm happy to oblige. you are the most vile, unprofessional and despicable member of the house of representatives. if you have something to say to me, stop being a coward and say it to my face. otherwise shut the heck up. this is pretty tough stuff.

there's been obviously a lot of hand wringing over how entitlements like medicare might have to be changed due to deficit reduction. stakes huge to florida because it's got such a huge retiree population. >> never pretty to fight about money. joe, thank you very much. your next update from the best political team on television is just an hour away. a new hour starts with this breaking news. word that the u.s. justice department plans to meet with families of 9/11 victims over growing suspicions their phones may have been hacked by reporters working for rupert murdoch. the fbi plans to meet with those families, too. no dates have been set. now, then, if you think the british press is rough and tumble, you got to love parliament. welcome to an uncommon session of the house of commons where the phone hacking scandal that began years ago in a new defunct tabloid today fell dramatically and noisily in the lap of the british prime minister david cameron. imagine for a second if a u.s. president had to stand on the floor of congress and defend his hiring of a newspaper man

suspected of eavesdropping. this is that man. coulson quit the job under a cloud in january and was arrested this month. cameron says if he'd known then what he knows now, coulson never would have worked for him. now he's in no mood to apologize. >> what the public expects is not petty political point scoring -- what they want, what they deserve is concerted action to rise to the level of events and pledge to work together to sort this issue out once and for all. and it is in that spirit that i commend this statement to the house. >> it's no exaggeration to say britain's very foundations are shaken by the lengths to which some london muckrakers allegedly went to find the scoop. just yesterday rupert murdoch, his son james and newspaper corp. former top british executive, rebekah brooks, they

were hauled before a parliamentary committee. this followed the resignations of britain's top two police officials whose own phone hack investigations went nowhere and were blasted today by parliament. and then, of course, there is the prime minister, david cameron. he is facing the single biggest crisis of his 15 months as prime minister. my colleague dan rivers has been watching the latest spectacle. a lot of people are wondering, is cameron's leadership really under threat here? >> reporter: well, it's certainly under pressure. and the house of commons at its worst can be a real sort of bear pit. it's noisy, it's rowdy, it's impolite. that's exactly what it was like today with david cameron facing some 130 different questions about phone hacking and specifically about his hiring of andy coulson. something that the opposition just went for time and time again. now, the leader of the opposition party here, the labor party, is ed milliband.

he wasted no time going for the jugular, why he ig neared repeated warnings not to hire andy coulson. >> he says in hindsight he made a mistake by hiring mr. coulson. he says if mr. coulson lied to him, he would apologize. mr. speaker, that isn't good enough. because people -- people -- it's not about hindsight, mr. speaker. it's not about whether mr. coulson lied to him. it is about all the information and warnings that the prime minister ignored. he was warned. and he preferred to ignore the warnings. >> reporter: ed miliband didn't quite go as far as calling on the prime minister to resign, but he did call on him to say sorry. david cameron, on the other hand, said he had nothing to apologize for.

he wanted to give andy coulson a second chance. he believed him when he said he knew nothing about phone hacking. now we know that, well, we don't know for sure what andy coulson knew. he's been arrested. it's all rather embarrassing. the prime minister still sticking to this line, look, he's not been tried and judged yet. let's wait and see what the police find out. >> it is incredible, dan, to watch this all unfold between the hearings yesterday and everything that's happened and all those that have resigned and been arrested. what does parliament say about how all this has been handled so far? >> reporter: well, there has been withering criticism from all parties about how the police have handled this. don't forget that they looked into this initially back in 2006, '07, looking first of all into the hacking of members of the royal family's phones and concluded that only a handful of people had had their phones hacked into. now they're saying 4,000 people and upwards may have had their phones hacked into.

and that has been roundly criticized that they didn't go back and look properly at that evidence first of all. they had 11,000 pages of evidence which they simply didn't go through meticulously enough, they didn't pick up on the fact that the finance minister, even here, had his phone tapped. the former prime minister, gordon brown. the police have had an absolute kicking. so has rupert and james murdoch. and today so did the prime minister, david cameron. >> dan rivers in london, dan, thank you. if close ties with the murdoch crowd are now a liability in the uk government, they didn't begin with david cameron. rebekah brooks told lawmakers yesterday that she visited cameron's predecessors a lot more often than she ever saw david cameron. brooks is the long-time murdoch protege who rose to become his british chief executive until she resigned and was suddenly arrested. listen to this. >> the fact is i've never been to downing street while david cameron has been prime minister. and yet under prime minister

gordon brown and prime minister tony blair i did regularly go to downing street. strangely, it was under labor prime ministers that i was a regular visitor to downing street and not -- and not the current administration. >> at least six investigations are now under way into phone hacks, bribes to police and government conflicts of interest. we will, of course, keep you posted on all of that. checking some other top stories that we're following, president obama says he'd agree with short term extension of the debt ceiling. the white house says it would happen only if there's an agreement on a significant deficit reduction plan by congress. until now mr. obama has opposed any sort short-term deal. if the has responded favorably to a new bipartisan plan from six senators to reduce deficits by nearly $4 trillion over the coming decade. time is running out before the august 2nd deadline to raise the government's $14.3 trillion debt ceiling. mr. obama meeting with both house and senate democratic leaders at the white house in less than an hour from now. more on this in ten minutes when

we speak with former secretary of labor robert reich. in what he calls the largest commercial aircraft order in history american airlines is replacing its fleet with hundreds of new aerolines from boeing and airbus. amr corp., the parent company of american, says the new aircraft order will replace its current fleet with more fuel efficient planes. the order calls for 460 boeing 737s and airbus a-320s. boeing says the new planes are 5% more fuel efficient than older generations that were build back in the 1990s. 75 former football players are suing the nfl claiming the league purposefully concealed the harmful effects of game-related concussions. the lawsuit filed tuesday claims the nfl knew as early as 1920s about the dangerous effects of concussions on a player's brain but did not disclose the information before 2010. the company that makes helmets for the league is also named as a defendant in the suit which seeks unspecified damages.

league spokesman greg ielo told the website profootballtalk.com that the league was not aware of the claims of the suit but would vigorously contest any claims of that kind. we'll talk more about this with our chief medical correspondent dr. sanjay gupta in just about 20 minutes from now. school children being used as pawns in a budget battle in memphis. the first day of school on hold indefinitely. the vote was 8-1. we'll talk to the only school board commissioner who opposed the shutdown, next. mine was earned over the south pacific in 1943.

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personal pricing now on brakes. tell us what you want to pay. we do our best to make that work. deal! my money. my choice. my meineke. school children in memphis could be getting a longer than expected summer break. the school board voted last night to delay the august 8 start of school. the board says the city has shorted the district about $150 million over the last several

years. and classes won't start until they get $55 million the city owes the schools for this year. the school board commissioner who proposed the shutdown says schools could be closed indefinitely. >> the school board on a vote of 8-1 decided on a vote of 8-1 decided we're no longer going to wait for funds that the state says we are rightfully due. 8-1 was the vote to delay indefinitely. >> here now to talk about the school funding battle in memphis is the only school board member who voted against shutting the schools down. he is martavius jones. mr. jones, thank you so much for coming on. i want to ask you first, why did you oppose this? you were the only "no" vote in this case. >> in principle, i support the decision of the board of education. my "no" vote was merely based upon the amount that we are expecting the city to provide memphis city schools before we open schools. now, in principle, i fully

support that we should not open schools without having assurances that we will have the sufficient funds in order to conduct an academic school year. we had no assurances going into last night that we would have enough funds to operate the school year. >> so was your concern about the kids if you didn't get the money to put these classes on hold indefinitely, you didn't think that was a good idea? >> absolutely. professionally, i'm a financial adviser. i wouldn't tell a client to go out there and by a new house without having sufficient funds to pay for it. we should not open schools and provide an enriched academic environment that we strive to do without having sufficient funds to do that. we have worked with the city council over the past -- well, since 2008. and we have $73 million in arrears from our city council right now. and we've relied upon our savings account -- the equivalent of our savings account to fund memphis city schools since 2008. and we just don't have the money to do that anymore. >> the mayor, i spoke with him last hour.

he blames property taxes. he said the money just isn't there. but he also says that he's confident the school will open and the kids will go to class on august 8th. do you believe that? >> i am hopeful and i'm going to do all that i can to make sure that teachers who are to report on august 1st will be able to report august 1st and a week later, august 8th, that the kids will be able to report to school. however, i have to take back to my board of education, my colleagues, i have to take back something that's agreeable. and i would not vote for us to open schools if we don't have any type of payment arrangements, which we've not had in the past, of when we can expect payments to fund memphis city schools and receive everything that's required by state law in order to operate memphis city schools in this fiscal year. >> help us understand what is so bad about what's happening there in that district. because, i mean, if you're talking about keeping these kids out of school indefinitely, what's so bad in terms of the

situation there, how bad is it for the children in school that you would actually consider this? >> we -- we would -- we could inherently be looking at a situation where we started on august 8th. kids report on august 8th. and without any assurances of payment, we could be at november 15th, and because we don't have any payment arrangements, the city council has not -- up until now the city council only yesterday gave us a date on which we could approve a budget or present a budget to be approved. so we could have been looking at november 15th without any funding and we'd have to close the doors of the memphis city schools. instead of doing that -- >> just quickly, tell me, if the children can't get to school on august 8th, what's going to happen? will they have to make up these days? >> by law we have to provide 180 days of instructional days. so we would have to extend the school year into june next year. normally we get out right before, right after labor day. we would have to extend the school year to make sure they

have 180 days of instructional time. >> martavius jones, i appreciate you coming on and talking to us about this. please do keep us up to date. we're going to continue to follow this. we want to know if those students are going to school on august 8th regardless of what the mayor says. please check in with us. >> memphis city schools wants the children there. thank you. everybody talks about the deficits. now maybe, just maybe, washington will do something about them and that pesky debt ceiling as well. i'll get the views of a guy who's been there, robert reich, when we come back. pation, diarr, gas and bloating. with three strains of good bacteria to help balance your colon. you had me at "probiotic." [ female announcer ] phillips' colon health. i always keep it in the house. that and boston crème pie, white chocolate strawberries. [ female announcer ] yoplait light -- over 30 delicious flavors at about 100 calories. babe, what are you doing?! ♪

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in a little over half an hour president obama will sit down again with democrat leaders of congress on the debt ceiling crisis. and though time has grown

shorter since last they talked, the prospects for real action seem greater. keyword, "seem." months of behind the scenes work by senators of both parties is suddenly emerging as a possible way out of a standoff that could lead to the first ever u.s. government default in just 13 days. a blueprint from the so-called gang of 6 would aim for $3.7 trillion in deficit reduction over ten years and $500 billion in immediate savings. it would rewrite the tax code, lowering income tax rates, but closing all manner of loopholes and writeoffs. it would force down spending on entitlements, medicare and social security. while there's no way a bill of that size could get passed by august 2nd, just having it out there may be enough to get an increase in the debt limit before the treasury has to start stiffing its many creditors. watching all this from a safe distance is former labor secretary robert reich, now professor of public policy at uc berkeley and author of numerous books including "aftershock: the

next economy & america's future." mr. secretary, thank you so much for your time on the program today. if you were in that white house meeting in just about a half an hour from now, what would you tell both sides? >> well, i would say very simply that a failure to raise the debt ceiling is not a small matter. it means that we are not paying interest on our obligations. it means, therefore, that any further loans and lenders are going to demand huge interest from the united states. it's going to hurt our future faith and credit. in fact, it really would bust the faith and credit of the united states altogether. and every american would suffer as a result. this isn't a matter of just a few people being out of social security or out of medicare. those checks would not go out, by the way. but all americans would suffer because of the higher interest rates that would result. >> so many plans, so many numbers. it's sort of getting hard to keep track of it all. but we have talked about the gang of 6 plan. there's two more actually in the mix. we have the house republican cut cap and balance plan which just

passed yesterday, as you know. we also have the mcconnell/reid senate plan. that would let the president raise the debt limit in three installments between now and the 2012 elections. what do you think of that plan? is that a solution or stopgap or worse? >> it's a stopgap. it's not worse than a stopgap, randi. but it certainly is way of kicking the can down the road a little bit. remember, on the mind of most americans today is not the budget deficit and it's not the debt ceiling. it is jobs and wages. those are the big issues. most americans are saying to themselves according to the polls and also just a little casual impeer schism, they're saying when is washington going to get on with the business of getting jobs and wages back on the front burner? well, washington presumably has to get by this impasse, this debt ceiling impasse, before it can turn to jobs and wages. and hopefully it will. >> what is the best case scenario, do you think, as you look at all of this on the table? what's the best-case scenario

for the country and really also for the president? >> over the long term we do have to bring down the budget deficit. there's no question about that. in the short term, that is over the next year, we should not be doing budget deficit reduction because, remember, businesses are not spending. individuals, consumers, are not spending because they're so worried right now about their own plight. they're having big mortgage interest that they have to pay. not only that, they also are worried about their jobs and wages. they're still not out of the gravitational pull of the great recession. government spending, whether you like it or not, is necessary to make up for the reluctance of individuals, consumers and businesses to spend. otherwise we're going to be mired in the recession for years. but i would say once we get by the recession, in fact, hopefully next year, maybe the year after, once unemployment starts coming down, then by all means let's focus like a laser on getting the budget deficit down. >> robert reich, thank you for your insight and your time.

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it is a bizarre story out of the wealthy town of coronado, california, that involves two deaths at the same mansion. the first, a 6-year-old boy, son of pharmaceutical executive jonah shacknai. max shacknai died over the weekend after falling down the stairs six days earlier. the second just two days after max's fall, jonah's girlfriend rebecca was found hanging off a balcony at the home naked with her hands and her feet bound. now investigators have said they believe the little boy's fall was an accident. but they are investigating whether the two deaths are possibly linked. joining me now, forensic psychologist dr. chris mahandy. thanks for coming on to help us break this down a bit. i know you're not directly involved in this case, but i want to ask you what you think investigators are doing right now to try and figure out what happened, at least to rebecca,

the woman. >> well, in any death situation they're going to be looking at one of four possibilities. is it natural? is it an accident? is it suicide or homicide, what we call nash. the more likely they're going to be focusing in on evidence to support or refute whether it's a suicide or some sort of homicide. so right now they're doing a victimology analysis, looking at everything they know about her. trying to figure out if she was a high-risk victim, if there was any kind of changes in her life that might point towards a suicide or any other kinds of situations that could have brought her on a collision course with somebody who might have victimized her. they're exploring all these possibilities and especially focusing in on the suicide

versus the homicide types of scenarios. they're keeping an open mind and they're looking at the evidence, talking to people and going at it from that framework. >> you have this little boy who had fallen down the stairs in this home just a couple of days before she was found. how much evidence might there be in his case and how important would that be compared to what they might find surrounding her case? >> well, the tragic death of this little boy could just simply be a coincidence. but to have two of these events happening in such close temporal proximity is certainly worthy of looking at hard and long. that may be, for example, a motivation for why a person, if they feel guilty or responsible, might want to take their own lives. on the other hand, if somebody is blaming a person for having been part of the circumstances leading up to a tragedy like that, that could potentially lead to somebody having a motivation. on the other hand, maybe there

is some diabolical plan targeting this family, this household, completely apart from all of this. they're going to look at all possibilities here and keep an open mind and see what comes up. >> all right. dr. kris mohandie, appreciate your insight. thank you. up next -- >> i was actually considering not living. i was actually considering that. >> you wanted to end your life? >> yeah. >> but instead, that former football player is now one of dozens who has just sued the nfl. we'll have his story and talk much more about the lawsuit with dr. sanjay gupta, next. [ male announcer ] this is coach parker...

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breaking news. according to a gop aide, speaker boehner, house speaker john boehner and minority leader eric cantor will be meeting with the president today at 5:00 p.m. at the white house. that'll be just a couple of hours or so after the president is expected to meet with the democratic leaders. so there you have the picture there in washington. the white house and congress,

certainly the focus today. the nfl has just been hit with a lawsuit by 75 former players. the claim? the colleague has noknown for about 90 years there's a link between concussions and brain damage but intentionally concealed that information from players, coaches, trainers and the public until last year. we reached out to the nfl for a comment and received this statement. it says, quote, we have not seen the complaint but would vigorously contest any claims of this kind. we should also note that ridell, the company that makes helmets for the league is also named in the lawsuit as well. last fall chief medical correspondent dr. sanjay gupta spoke with former vikings linebacker fred mcneill who is now suing. >> he got drilled at the 5! >> reporter: they are thrilling. >> came in with a stinger. >> reporter: and terrifying. watch a football game, and you can't miss that.

the hits. but what is the real impact? what is happening to the players' brains? how many times you take a hard hit playing football? >> there was one time that i had a real serious concussion. and it was so serious that i was -- i was dizzy for, like, you know, for, like, two, three weeks. >> reporter: 30 years ago fred mcneill was a linebacker for the minnesota vikings. he played for 12 seasons and in two super bowls. >> a big shot! >> reporter: relentlessly hitting opponents was his job. >> you got to be able to move, right? >> reporter: no question mcneill is robust physically. but you can tell his brain has paid a price. what has it done to you? >> well, the impact is on memory. people talk about the conversation that we had two weeks ago or three weeks ago or a month ago or whatever, and i

don't remember. >> reporter: if we saw each other again, would you remember me? >> sanjay, i don't know. when i started out -- >> reporter: the not knowing that happens often. there was also rage. >> it got to where i would say things that really shouldn't upset him and he would get angry really quick. his temper was very short. >> reporter: followed by remorse. >> i think that was the biggest thing for my dad. he felt like it was all his fault. >> reporter: it wasn't. but there was no doubt he was different. >> there was a moment where i realized i wasn't living with the person that i knew and married. >> reporter: no one seemed to know what was happening to fred mcneill. until reports about other former nfl players who had been through similar issues. like mcneill, they had memory problems, rage issues and depression. most disturbing? all died young. could concussions, the common denominator, be to blame?

researchers at boston university medical school are looking deep into the brain and spinal cord of former athletes to find out. what they are seeing is startling. this is a normal brain. this one a 45-year-old former nfl player. see the brown tangles? that's brain damage. it looks a lot like this 70-year-old brain. with dementia. >> to see the kind of changes we're seeing in 45-year-olds is -- is basically unheard of. >> reporter: it's called conic traumatic ensef lop thi. here's the kicker. those changes are directly associated with rage, memory problems and depression. >> i was actually considering not living. i was actually considering that. >> reporter: you wanted to end your life? >> yeah. i was just thinking that would be so much easier.

>> and sanjay gupta joins me now. wow. i mean, that is just so hard to watch. clearly, he's struggling. i know you've been in touch with his wife today about the lawsuit. what is she saying? >> i think this was a process of deliberation for her. what she's basically said is, look. look at him. he's a physically robust guy. charming certainly when you meet him as you saw there. he is unable to do anything, randi. unable to continue any sort of life after football. that's the first point. the second point is that she has looked at the evidence along with a lot of these other plaintiffs and said, who knew what when? and it seems like, at least according to her, there was a lot more information prior to last year, 2010, when this was first officially acknowledged by the nfl. let me just tell you really quickly, randi, what we're talking about here with regard to concussions. a quick animation might demonstrate this. you talk about the brain sort of moving back and forth in the head. it's sort of a fluid medium, moving back and forth. lots of chemicals released in response to that quick movement, that damage. those chemicals essentially will stay in the brain and cause

forms of brain damage. but the brain can potentially heal from a single concussion. the real problem for a lot of these players is that the brain doesn't heal and they're back on the field and get a second concussion. it can be expo nen shlly worse. that's been an issue for a long time. a lot of scientists have made this particular claim. >> what have the nfl's doctors been saying about concussions? >> i've interviewed them as well. dr. allen boeingen chairs a committee that oversees this specifically. he leased a statement some time ago. he says what we're trying to prevent is multiple concussions for the reasons i just mentioned without recovery. we know there are long-term effects of concussions but they have not been fully characterized. as you mentioned, randi, they haven't looked at the report as well. they say they're going to vigorously contest, you know, this lawsuit. >> so what is the outlook for fred mcneill? >> it's tough. i mean -- >> is there any way to get that memory back? >> i think that you'd have to almost characterize fred mcneill is someone that you characterize

with dementia. with almost an alzheimer's like disease. as you know, the outlook is not good right now. there's lots of research taking place, but right now it's more in the category of diagnosis and prevention than in treatment. so for fred mcneill, you know, while he's conducting his life, he's able to interact with his wife, his memory, his short-term memory is just quickly disappearing. as well as the depression issues, the rage issues. so it's not good right now. but, you know, that's part of what's driving them. >> what struck me was that question you said to him. i took a deep breath in when you said it, when you went, would he remember you if he saw you again. he said he didn't know. that just breaks my heart. >> it gave me chills. we're sitting there having this long conversation just like you are now. at some point i realized, he is not really remembering much of anything here. so i just asked the question and it was a moment of extreme candor. as soon as he walked away from me, there was a good chance that he had forgotten about me. >> i would also imagine the doctors who are studying this,

they must be shocked by what they're seeing. >> i think when they first -- when you saw those slides, when they first saw that evidence of ensef lop thi in a 45-year-old, the same sort of thing they see in 70, 80-year-olds, i think it was a moment for all of them to say there is something happening here. now we have evidence of it. >> you're a brain surgeon. would you ever imagine that something like this would be the result of a professional sport? it just seems so wrong. >> you know, i think, for example, in boxing there's been literature for some time in boxing about something called being punched drunk, for example, after developing this dementia after matches. the same sort of forces possibly taking place on the brain in younger and younger players who are bigger and stronger and faster than ever before, it's shocking to see. but i guess not entirely surprising. as some football players have said to me when i really press them, how do you make yourself safe, why do you do this, isn't this hurting your brain? they say, look, if you don't want this, don't play football. it's going to happen to everybody. that's the attitude. >> they're ageing decades before

their time. >> after football they don't have the life they anticipated. >> what do you have this weekend? >> we'll talk a lot about this. we're going to talk to max page. he was the boy from the darth vv vadar commercial. >> is he has adorable in person as he was in that costume? >> he came right up to me, the 6-year-old kid and said i hear you have three daughters. i'd like to meet them. 6 years old. quite a career. >> sanjay gupta, m.d., this weekend. thank you, sanjay. appreciate it. hundreds of thousands on a desperate search for food and water. the u.n. declares famine in somalia. a live report from a refugee camp, coming up next.

for tens of thousand of desperate people in somalia, each day is now one of life or death. the reason? what the u.n. describes as the worst drought in more than half a century. hundreds of thousands of somalis have fled to refugee kpacamps i either kenya or ethiopia. david, tell us what the conditions are like where you are. >> reporter: well, the conditions are horrible, randi. basically what we're having is up to 5,000 people a week streaming into these camps. this is the camp in northern kenya. it's really the main point where refugees who are coming out of that famine zone in the southern part of somalia are where they come to here in kenya. when people arrive, randi, they come into this camp. they go to the reception area. they get two weeks of food, a

tiny amount for people to survive on. they don't get shelter. they don't get initially registered as refugees. they go to the outskirts of the camp, to areas that are terrible conditions. they don't even have proper shelter. they don't have access to water easily. and literally we saw a father burying his 4-year-old child yesterday. she died of hunger even though she'd already made it to kenya to safety. randi? >> what is the status, david, of the international aid that's coming in? what are they receiving and is it going to be enough? >> reporter: well, they say there's a shortfall in funding. the u.s. government announced today that because of this call by the u.n., that there is a famine in two parts of southern somalia, randi, that they are going to bolster funding. other governments have also promised to fund. but that just isn't enough at this point. however, one thing is the money. the other issue is the access. in southern so moll ya, there's

an islamic militant group with links to al qaeda is effectively stopping aid groups from going in. effectively now you have this situation where aid groups want to go in. even usaid says they want to work with the u.n. to get into these areas controlled by this militant group. they say it's okay, that they'll allow access. but the u.n. wants assurances that aid workers are not kidnapped or killed if they go to these people and give them that assistance. with that instance in southern somal somalia, you would see a slowdown in the flow of refugees here to kenya and you might see a quick end to this crisis. but that's the $6 mill krion question right now. will al shabab let the aid groups into the south. education budgets on the chopping block. are we sacrificing our future or is it a necessary evil in tough economic times?

our stream team will tackle that subject right after the break.

last week memphis city school superintendent kriner cash was directed to cut $78 million from the current budget. entire budgets for nonmandated programs such as junior rotc, school security staff and early childhood education were cut. the memphis city school's board held an emergency meeting last night. the board claims the city owes them over $151 million dating back to 2008 and that it would be, quote, irresponsible to open schools while cutting all of these services. the board voted to indefinitely delay the school year until the

city of memphis pays up. meanwhile in minnesota, legislators agreed on a proposal to end the state government shutdown. part of the deal would require the state to raise $700 million by delaying state aid checks to school districts. and while you can find reports of delayed payments to school districts all over the country, all of the budget battles have one thing in common. when public sector spending needs to be reined in, education becomes a major part of the equation. today's question for the stream team, is this sacrificing the future or a necessary evil. steve perry is on the phone with us. he's a founder and principal a preparatory magnet school. let me start with you, jeff, if i can. are you in favor of the steps the memphis school board is taking? do you think this is a good idea to delay school indefinitely? >> i think it's a horrible idea. it's a horrible message to the kids. we are telling them we're playing politics with their

education. education should be the last bastion that should be touched. i think they're being forced -- in their own minds they feel they're being forced to take this drastic action. but, again, i just do believe that it's going to have a very dill toirs effect on the minds of the children knowing that this is going on. >> steve, what are you thoughts on the recession and how it is impacting education reform? >> the recession has been one of the most important things to happen to public education. because what it's done is it's shown us that we've overspent and underperformed. and it's now created an opportunity where accountability can be the order of the day. it's also presented us with the opportunity for governors to lead. they've been given a mandate. what it's also shown us is we as educators have a responsibility to make sure we are fiscally responsible. we've seen for too long that in public schools we've had whatever we wanted.

as often as we talk about the problems of underfunding and overexpecting, we've had an average class size for very long of about 22. as a result, we've gotten -- we've become one of -- >> it sounds like you're saying you do believe schools can actually run more efficiently. how much of a problem is it for schools to not have their whole budget? >> well, it's a problem for them to not have their whole budget. it would be foolhardy to say you can operate without the budget that you need. the problem is we don't often need the budgets we're often given. we are overspending. when you give everyone in the school a raise simply because they lived another year, you're not being fiscally responsible. you have to give raises based upon a person's ability to perform and more importantly the ability of the organization to pay. you cannot simply give a raise because it's another calendar year. that's what we've done for too long. you simply cannot give bloated benefits because people want them. if krou can't pay for them.

you can't give them. it doesn't matter if they're educators or eye doctors. it doesn't matter. >> jeff, who really loses out here? when you think about school not opening on time and then also, of course, having to extend to make up those days, what happens to the kids here? >> well, these are kids now who see adults as playing with their future. it's like all of us as adults who are so through with washington, with the partisan politics over the raising of the debt ceiling. we now feel that this is just a big game and we're pawns in it. and the kids see the same thing. and even though steve is giving some very wise words here, i really do believe that he's mixing apples and oranges. this isn't about paying for performance that's not being delivered. this is about closing down a school system because you're owed money. and at the end of the day, the ones who suffer the most, as you're saying, are the kids who are going to have to start school late, perhaps, and then have to work through the

summers. it's just not fair to them that the adults are playing politics and i understand that they may have to, but that they are still playing politics with the futures of our children, with the education of our children. >> steve, i have 20 seconds for you to have the final word here. >> call it politics or whatever you'd like to. in the end, no government entities can run without money. and we are schools and we are government entities. and in order for us to be able to run effectively, we need to be able to pay people. if there's no money to pay people, it doesn't matter what they do, police fire or educators. we have to have enough money to pay. memphis public schools has a particular set of circumstances that extends beyond this conversation, thnot the least o which it's already been taken over by the county. it's a bigger problem. and one of the lowest performing school systems in t country. much bigger problems than we have the opportunity to digs cuss here. more important, we as educators have to pitch in and understand we have a responsibility to be responsible in our spending and

in our product. >> all right, steve. that was more than 20 seconds. because it's such an important topic, i'll let it go. >> my bad. >> steve perry, jeff gardere, appreciate both of you. planning on picking up the latest copy of "harry potter" at your local bookstore? you may need to hurry up. the nation's second largest bookstore chain is closing. why and what this means for the price of books, next. and how me in your life count on you. that's why we offer accident forgiveness, man: good job. where your price won't increase due to your first accident. we also offer a hassle-free lifetime repair guarantee, where the repairs made on your car are guaranteed for life or they're on us. these are just two of the valuable features you can expect from liberty mutual. plus, when you insure both your home and car with us, it could save you time and money. at liberty mutual, we help you move on with your life. so get the insurance responsible drivers

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bad news for book lovers this week. border's, the number two bookstore chain after barnes & noble has announced it will liquidate its assets after efforts to find a buyer have fallen through. pending bankruptcy court approval, borders' liquidation could begin as soon as friday killing 10,700 jobs in its remaining 399 stores. martin savidge has more on the

battle of the bookstores. >> reporter: once upon a time, all books had pages. and were only bought in stores. what a fairy tale. today we read things called kindles or nooks and books are downloaded anywhere, any time. to see how much things have changed, just peer into john mcclure's front window as he runs his publishing company from a spare bedroom. >> this is actually a book we published, "get the job you want in i.t.." >> reporter: he used to go to borders, then saw the writing on the wall and gave up his i.t. job to begin a publishing company. so far he's published 200 electronic books and seen his business double each year. >> i think publishing is undergoing a huge change not unlike the whole record industry with -- with downloadable music. >> reporter: so is it the end of paper books? mcclure says no.

not even close. >> just in the last three years it's literally come to about -- about this point where e-book sales are about on par with the paperback sales. >> reporter: but you don't think paperbacks are going to go away? >> no. i think it'll level off somewhere in the middle. >> reporter: this research expert agrees. he says only 11% of readers say they would buy an e-reader. >> 90% of americans are still going to buy a book. >> reporter: beamer says it would be wrong to think borders went bust because bookstores are obsolete. >> you can't look at borders to me as a failure of the book industry. you have to look at borders as a failure of a retail concept. >> reporter: so if borders got it wrong, then b & l books could seem to have got it right. >> this is romance. regular romance. >> reporter: jen packwood has 38,000 books and 4,000 loyal customers. daughter, dena, manages the place. >> we're here! we're here to stay! >> reporter: so far they've been around 24 years. despite all the changes in the book business, their readers keep coming back.

packwood says their secret is is something you just can't download. >> customer service. >> reporter: knowing your customers? >> yes. being able to build rapport with them, knowing what they read and also our customers go way back as far as -- they've grown up in the store. when they were children their mother brought them in. they come back and bring their children. it's sort of family like. >> martin joins us now live. martin, how are the customers and the employees taking this news? >> reporter: well, those inside of borders when you walk into the one that's just behind us here, actually, they're still open. there's still people going in the doors. but a much different attitude. i think addness is the greatest feeling you get when you talk to customers inside there. of course, trepidation on the part of the employees wondering what they're going to do next for a job. >> martin savidge, thank you. appreciate that. cnn newsroom continues with brooke baldwin right after this very quick break.

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